Hi­madri Spe­cial­ity plans to in­vest 628 crore for brown­field ex­pan­sion

Chemical Industry Digest - - News & Views -

Hi­madri

Spe­cial­ity Chem­i­cal Ltd, an in­te­grated spe­cialty car­bon com­pany is con­sid­er­ing an in­vest­ment of ` 628 crore for brown­field ex­pan­sion of its car­bon black and ad­vance car­bon ma­te­rial units in West Ben­gal.

Ac­cord­ing to Anurag Choud­hary, CEO, Hi­madri Spe­cial­ity, the de­tails re­gard­ing the pro­por­tion of debt and eq­uity for the cap­i­tal ex­pen­di­ture would be fi­nalised within a month.

The es­ti­mated in­vest­ment for scal­ing up its car­bon black unit by 30,000 tonnes a year to 1.5 lakh tonne will be close to ` 148 crore. The re­main­ing ` 480 crore (out of ` 628 crore) would go to­wards 20,000 tonnes a year ca­pac­ity ad­di­tion at its ad­vance car­bon ma­te­rial unit.

Its ex­ist­ing ad­vance car­bon plant at Falta at South 24 Par­ganas in West Ben­gal has a pro­duc­tion ca­pac­ity of 600 tonne a year.

“The de­mand for ad­vance car­bon has been grow­ing at a CAGR of close to 35 per cent; while that for car­bon black at 6-7 per cent,” said Choud­hary ex­plain­ing the ra­tio­nale be­hind the ex­pan­sion.

The ex­pan­sion of both the units would take any­where be­tween 18 and 24 months.

Hi­madri’s ad­vance car­bon finds ap­pli­ca­tions in the man­u­fac­ture of lithium-ion bat­ter­ies which are used across por­ta­ble elec­tronic de­vices as well as hy­brid and elec­tric ve­hi­cles.

The com­pany is also in the process of scal­ing up its coal tar dis­til­la­tion ca­pac­ity by 25 per cent to 5 lakh tonnes a year through de­bot­tle­neck­ing of its ex­ist­ing fa­cil­ity at a cost of ` 15-20 crore. The ca­pac­ity would come on­stream by the end of FY18, Choud­hary said.

The com­pany posted close to 23 per cent growth in rev­enues to ` 468 crore for the quar­ter ended Septem­ber 30. The growth in topline came on the back of vol­ume growth of close to 12 per cent and value growth of 1520 per cent, Choud­hary said. Net profit jumped by 168 per cent to ` 51 crore (`19 crore) dur­ing the pe­riod un­der re­view.

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